Company registration in Lithuania

Located in Northern Europe, the Republic of Lithuania, is a member of the EU, Eurozone and Schengen area.

By registering a company in Lithuania, foreign investors can gain a foothold in the EU market and expand their business.

The advantages of setting up a company in Lithuania include:

• low inflation rate;
• proximity to European markets;
• fast and easy company registration procedure;
• investor-friendly legislation;
• double taxation treaties with other countries;
• highly qualified labor force;
• modern banking sector;
• opportunity to obtain a residence permit in Lithuania;
• low taxes.

You can register a company in Lithuania by choosing one of the below business organization forms:

Uždarojiakcinė Bendrovė (Private LLC).

Key features:

• share capital - 2900 EUR;
• number of shareholders: from 1 to 250 (can be legal entities or individuals of any nationality);
• number of directors: minimum 1 (only a physical person);
• secretary is required (only a physical person);
• audit is not required;
• information about beneficiaries is not disclosed;
• VAT return must be submitted annually;
• financial reporting is required.

Akcinė Bendrovė (Public LLC).

Key features:

• share capital – 43,500 EUR;
• no restrictions regarding the number and residency of shareholders (individuals or legal entities);
• number of directors: minimum 1 (only a physical person of any nationality);
• secretary is required (a physical person);
• trading in securities is allowed;
• audit is mandatory;
• Information about beneficiaries is not disclosed;
• VAT return must be submitted annually;
• financial reporting is mandatory;
• registered office and address in Lithuania are mandatory.

Taxation

If you are intended in setting up a company in Lithuania you should keep in mind that the country has one of the lowest income taxes of 15% (among EU countries).

The tax rate can be reduced to 5% if:

• a company’s income is up to 1 million Lithuanian litas.
• the number of a company’s employees does not exceed 10.

Other taxes:

• companies not involved in the agricultural sector are exempt from income tax;
• dividend tax is 0% (standard tax is 15%);
• VAT is 21%.